How much annual payment in the retirement account

Assignment Help Accounting Basics

Reference no: EM132665416

Suppose you think if you were to retire right now you would have needed $50,000 each year to supplement your social security and maintain your desired lifestyle. But because there is on average 3% annual inflation, when you retire in 30 years from now you need more than $50,000 per year to maintain the lifestyle you like.

Question 1: How much will be equivalent to $50,000 at the retirement time when adjusted for inflation?

Question 2: How much will be the face value of the bond that yields the equivalent of $50,000, found in #4 of Part B in coupon payment?

Question 3: How much annual payment in the retirement account is needed to accumulate the amount needed to purchase the bond when retiring?

Question 4: What is the purchase power of the amount that will be received by your inheritors, measured in the current value of $ at the time of opening the retirement account?

(Hint: first calculate what future amount in 30 years is equivalent to $50,000 of now and then solve the rest of the problem).

Reference no: EM132665416

Questions Cloud

Explain the application of tort law : Application of Tort Law in Health Care Project Management Protocols. In the discussion preparation, you were asked to use critical thinking and metacognition.

Reflect on differences between cash basis and accrual basis : Reflect on the differences between cash basis and accrual basis accounting, and explain why you selected one option over the other.

Would place more emphasis on particular financial statement : Think about the different types of financial,If you were an investor, would you place more emphasis on any one particular financial statement? Why, or why not?

Calculate denise medical expense deduction : Create a spreadsheet in Excel to calculate Denise's medical expense deduction. Denise received $750 for a portion of her doctor's fees from her insurance.

How much annual payment in the retirement account : How much annual payment in the retirement account is needed to accumulate the amount needed to purchase the bond when retiring?

Post a model that health care organization might use : Post a model you have selected that health care organizations might use to improve the culture of quality. Describe whether the ethical theory of Just Culture.

Explain the organizational change in brief : Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments.

How human resources can assist organizations : Provide 3-4 examples of (1) how human resources can assist organizations in assessing/researching legislative and policy trends, and (2) how HR can use.

Examine employment regulations and policies : Examine employment regulations and policies that impact diversity in global organizations. Identify 5 tools that will help you identify issues before they.

User Account

All Pages